Facts of the Case

Ishwar Chand sought bail pending trial under Section 439 CrPC in FIR No. 385 dated 13.12.2019, registered at Police Station Central Sector-17, U.T. Chandigarh, under Sections 420, 467, 468, 471, 120-B IPC (with Section 201 IPC added later). His counsel contended that the case against him was concocted and fabricated, and that at most he was alleged to have issued fake bills in lieu of a 5% commission.

Issues Involved

  1. Whether the petitioner was entitled to bail pending trial, given the allegations that he was part of a group of fraudsters who obtained large GST refund amounts, and given the length of his custody.

Petitioner's Arguments

  • Contended that the case was totally concocted and fabricated, that he was not involved in the crime at all, and that at most he was alleged to have issued fake bills for a 5% commission.

Respondent's Arguments

  • The UT, Chandigarh, opposed bail, submitting that the petitioner was involved in a heinous crime as part of a group of fraudsters who managed to grab a huge amount on account of GST refunds, and that he was involved in one more similar case; it was not disputed, however, that he had been in custody since 03.12.2022 and was not required for further investigation.

Court Order / Findings

  • Without expressing any opinion on the merits of the case, allowed the bail petition and ordered the petitioner released on bail pending trial, subject to furnishing bail bonds/surety to the satisfaction of the Trial Court/Duty Magistrate.

Important Clarification

The Court was explicit that its order was passed 'without expressing any further opinion on the merits of the case' — this is purely a bail decision based on the length of custody and the fact that further investigation was not required, and it does not validate or reject the prosecution's allegations of a GST refund fraud scheme. The underlying GST fraud allegations remain to be proved or disproved at trial.

Sections Involved

  • Sections 420, 467, 468, 471, 120-B, 201, Indian Penal Code, 1860 — cheating, forgery, criminal conspiracy, and causing disappearance of evidence
  • Section 439, Code of Criminal Procedure, 1973 — power to grant bail pending trial

Decision – In Favour of

The petitioner (Ishwar Chand) — bail granted pending trial; the order expressly does not decide the merits of the GST refund fraud allegations, which remain open for trial.

Case Details

High Court of Punjab and Haryana at Chandigarh; CRM-M No. 40118 of 2023 (O&M); Neutral Citation: 2023:PHHC:114585; Coram: Hon'ble Mr. Justice Rajbir Sehrawat; Date of Decision: 01.09.2023.

Link to Download the Order

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